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  • MORL Is A 'Too Good To Be True' Investment: Updated [View article]
    It is a free chart from StockCharts.com. Click on the Free Charts tab, select PerfChart, enter the two symbols. You will get the same chart.

    I am not aware of when StockCharts credits the dividend.

    You can also generate the same chart but without dividend reinvestment. Simply precede each symbol with an underscore: _AGNC,_MORL.
    Mar 11, 2015. 03:05 PM | 1 Like Like |Link to Comment
  • MLPL Delivers Growth And Solid Yield, But Is It Worth The Risk? [View article]
    I think it works just fine as an income vehicle. If you are not in it for the trade then its price volatility is irrelevant.
    Mar 11, 2015. 02:04 PM | 2 Likes Like |Link to Comment
  • American Capital Agency Corporation And One Other Stock Can Fund My Retirement [View article]
    the-rebel,

    Correct. Currency is not debt. It is fiat money.
    Mar 11, 2015. 12:07 PM | Likes Like |Link to Comment
  • The Dividend Aristocrats: Create Your Own Portfolio Or Invest In NOBL? (Part 2) [View article]
    SDS,

    If one of the DAs cuts its dividend, it stays in the index until the annual reconstitution (with exceptions noted by DVK). That's what you get when you invest in the index as it exists.

    A recent example was PBI. It reduced is dividend in the 2nd quarter of 2013. But a funny thing happened after that. The stock price had been falling for some time since the cut was widely anticipated. By the end of 2013, PBI had actually risen in value from its quote at the start of 2013.

    The worst case scenario for a drop from the DAs is that the stock price drops to zero, which will result in a loss of 2% of your capital. A dividend cut or freeze in itself will never do this. A cut in price by 50% might be a better conservative estimate, in which case the result will be a loss of 1% of your capital. But in the case of PBI, it resulted in an increase in your capital.

    All of these outcomes are possible when you own the DA index. That is the price you pay for not trying to time the markets. Whether or not you think a 2% capital loss is 'significant' is up to the individual.
    Mar 11, 2015. 12:03 PM | 1 Like Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Updated [View article]
    In my admittedly limited experience, those wide spreads only show outside of trading hours.
    Mar 11, 2015. 11:23 AM | Likes Like |Link to Comment
  • MORL March Dividend To Bring Yield To 24%, Yellen Holds The Key To The Future [View article]
    Not in my opinion.
    Mar 11, 2015. 02:28 AM | Likes Like |Link to Comment
  • American Capital Agency Corporation And One Other Stock Can Fund My Retirement [View article]
    TechsArcana,

    The most dangerous situation for an mREIT is an inverted yield curve. Rising rates do not in themselves cause an inverted yield curve. I suggest you look at the history of NLY and see how it performed the last time the yield curve became inverted. Hint - it was before 2008. (I mention NLY because AGNC did not exist then.)
    Mar 11, 2015. 02:20 AM | Likes Like |Link to Comment
  • The Challenge Of Managing An Income Portfolio In A Traditional IRA [View article]
    FinancialDave,

    Thanks for the heads up on quarterly tax payments. I will actually be paying part of the tax this year, but I don't need to pay the total until next year. Until that time I have the balance to invest.
    Mar 10, 2015. 08:27 PM | Likes Like |Link to Comment
  • The Dividend Aristocrats: Create Your Own Portfolio Or Invest In NOBL? (Part 2) [View article]
    For those who look at charts, these are the symbols:

    Price return: SPDAUDP
    Total return SPDAUDT

    For comparison, the symbols for the S&P 500 are:

    Price return: SPX
    Total return: SPXT

    Bigcharts understands these symbols and has a bit of history. Other chart services may not.
    Mar 10, 2015. 08:17 PM | Likes Like |Link to Comment
  • The Dividend Aristocrats: Create Your Own Portfolio Or Invest In NOBL? (Part 2) [View article]
    george,

    The article was aimed at people like me who might be interested in owning all of the DAs, but who had dismissed NOBL because of its expense ratio. I had not taken the next step of computing the cost to own the DAs individually and in the index proportions, as compared to owning NOBL. If I ever wanted to duplicate the index, this article shows clearly how it can be done, and at what cost. I find it to be of real service.
    Mar 10, 2015. 07:59 PM | 3 Likes Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Updated [View article]
    jz10,

    See my comment above about the actual functioning of these ETNs vs the author's simplistic example. I have researched the supposed rebalancing drag in one of the ETNs that have been around the longest, MLPL. Its long term price performance is considerably better than twice the index it tracks. I can find no empirical evidence of any rebalancing drag. The only discernable drag is the ETN expense charge, and MORL has the second lowest among all the leveraged ETNs.
    Mar 10, 2015. 01:54 PM | 4 Likes Like |Link to Comment
  • The Dividend Aristocrats: Create Your Own Portfolio Or Invest In NOBL? (Part 2) [View article]
    six,

    I isolation, your calculation makes sense. However, this article is not about 'in isolation'. It is about comparing the annual costs of brokerage commissions vs the expense of NOBL. You left out the cost of the commissions.
    Mar 10, 2015. 01:48 PM | Likes Like |Link to Comment
  • The Dividend Aristocrats: Create Your Own Portfolio Or Invest In NOBL? (Part 2) [View article]
    DJ,

    Just to make sure Crosetti's answer was not totally clear to you: The S&P DA INDEX is rebalanced quarterly by S&P. It is the index rebalance that drives the ETF rebalance.
    Mar 10, 2015. 01:34 PM | 1 Like Like |Link to Comment
  • BP Prudhoe Bay Royalty Trust: Annual Report Indicates Termination And Shares Overvaluation [View article]
    So they can advise their clients about a risky investment?
    Mar 10, 2015. 12:53 PM | Likes Like |Link to Comment
  • MORL Is A 'Too Good To Be True' Investment: Updated [View article]
    jrxs4all,

    You are correct about the pattern of index changes. The MORL pricing supplement has a number of hypothetical examples. In one, the index decreases by 3% per month for 12 consecutive months. At the end of the 12th month, the index is down by 30.62%, and the ETN is down by 53%, not 61%. In another example, the index increases by 3% per month for 12 consecutive months. At the end of the 12th month, the index is up by 42.58%, and the ETN is up by 98.92%, not 85%.

    The author's example is way too simplistic to capture what really happens. Sustained index losses are amplified by less than a factor of 2 over time, and sustained gains are amplified by more than a factor of 2 over time. The real world results for MORL simply demonstrate this fact.
    Mar 10, 2015. 12:50 PM | 8 Likes Like |Link to Comment
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